Yellow Corporation is taking legal action against the International Brotherhood of Teamsters (IBT) for allegedly violating their union contract. The trucking company claims that the union has been blocking a restructuring plan for the past eight months. The modernization plan is critical to Yellow’s survival in a highly competitive industry dominated by non-union carriers, especially since the company needs to refinance $1.3 billion in debt from loans that mature next year.
Yellow Corporation seeks $137 million in damages for the breach of contract. The union’s efforts to prevent the restructuring allegedly constitute a breach of contract, according to Yellow. In a statement, Yellow management claimed that they had attempted to negotiate with the IBT to present a mutually beneficial solution. However, they noted that the union refused to meet and engage in open discussions.
While the lawsuit has been filed, the IBT has not yet received it. A representative for the Teamsters said that they would need time to review the lawsuit before providing a response.